Warren Buffett's Berkshire Hathaway reported operating profit of $13.485 billion for the third quarter, according to CNBC. This represents a 34 percent increase from the same period last year. Insurance underwriting income surged more than 200 percent to $2.37 billion. Total revenues reached $94.972 billion for the quarter. Net earnings per Class A share came to $21,413, up from $18,272 in Q3 2024.

The company's cash position expanded to a record $381.6 billion. Berkshire conducted no share buybacks during the first nine months of 2025. Class A and B shares gained 5 percent each year to date, while the S&P 500 rose 16.3 percent. Berkshire announced a $9.7 billion cash deal to acquire Occidental Petroleum's petrochemical unit, OxyChem, last month.

Impact on Shareholders

The absence of share repurchases reflects Buffett's assessment of market valuations. Berkshire has refrained from buybacks for five consecutive quarters. The conglomerate sold $12.5 billion in stocks during Q3 while purchasing only $6.4 billion, extending a streak of net selling to 12 straight quarters. This pattern began in 2022 when the Federal Reserve initiated rate increases.

Insurance operations delivered the strongest performance within Berkshire's portfolio. The railroad and utility businesses also contributed to the operating profit gains. Investment gains totaled $21.939 billion for the quarter, up from $20.514 billion in 2024. The OxyChem acquisition represents Berkshire's largest transaction since the $11.6 billion Alleghany insurance purchase in 2022.

Market Context and Succession Planning

Fortune reports that Buffett announced plans for Greg Abel to assume the CEO role on January 1, 2026. Abel currently serves as vice chairman overseeing all non-insurance operations. The cash reserve will provide Abel with resources for future acquisitions and investments. Most of Berkshire's cash sits in U.S. Treasury bills. The company generates steady cash flow from its insurance businesses.

The insurance industry overall recorded strong underwriting results in 2025. According to Swiss Re, the U.S. property and casualty sector posted a combined ratio of 99 percent in Q1 2025. Premium growth across the industry slowed to 5.5 percent for 2025 from higher rates in previous years. Rising competition has reduced rate increases in commercial property and personal lines.

Berkshire's decision to hold cash reflects Buffett's view on market valuations. The Buffett indicator, which compares total U.S. stock market value to GDP, reached 209 percent in early 2025. This level matches heights last seen near the 1929 market peak. Buffett has consistently stated he waits for attractive opportunities rather than remaining fully invested at all times.

Further Reading

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